UK motorists look away now: Venezuela tops the ten cheapest countries in the world for petrol - at 8p a litre

Petrol prices in Britain remain a consistent sore talking point for motorists - it’s not surprising considering costs have almost doubled in the last 10 years.

According to AA figures, the average litre of unleaded in Britain in August 2002 was 74.8p. This has rocketed to 135.52p this month. At the same time, Brent Crude oil prices have risen from an average of $28 to more than $113 now.

Filling up the tank is squeezing motorists' finances more than ever and any further rises in petrol costs could price them off the roads completely.

Petrol power: The majority of the top ten places for cheapest fuel are unsurprisingly in Arab-rich oil producing countries

Back in April, we revealed Britain was the seventh most expensive country in the world for petrol.

It is clear that car owners in Britain have some of the most expensive costs when it comes to filling up their motor. But what about the flipside – which countries have the cheapest unleaded?

In the second exclusive annual cheapest petrol worldwide report by This is Money, alongside new and used car website Evans Halshaw, we reveal just how cheap it is to fill up a car in other areas around the world.

We also compare petrol prices to wages in each country mentioned – and reveal that one country spends just 0.4 per cent of disposable income on petrol, while another sees motorists spend almost 20 per cent of their income on filling up their car, despite the cheap fuel costs.

10. Iran

Income (after tax): £388.68 Percentage of monthly income spent on petrol: 6.53 per cent

9. Algeria

Price per litre: 17p Monthly cost: £20.53

Income (after tax): £173.26 Percentage of monthly income spent on petrol: 11.85 per cent

8. Kuwait

Price per litre: 17p Monthly cost: £20.53

Income (after tax): £1,703.98 Percentage of monthly income spent on petrol: 1.2 per cent

7. Turkmenistan

Price per litre: 17p Monthly cost: £20.53

Income (after tax): £115.42 Percentage of monthly income spent on petrol: 17.79 per cent

6. Libya

Price per litre: 15p Monthly cost: £18.12

Income (after tax): £544.94 Percentage of monthly income spent on petrol: 3.32 per cent

5. Bahrain

Price per litre: 15p Monthly cost: £18.12

Income (after tax): £998.19 Percentage of monthly income spent on petrol: 1.81 per cent

4. Qatar

Price per litre: 12p Monthly cost: £14.49

Income (after tax): £3,664.92 Percentage of monthly income spent on petrol: 0.40 per cent

3. Saudi Arabia

Price per litre: 10p Monthly cost: £12.08

Income (after tax): £1,234.78 Percentage of monthly income spent on petrol: 0.98 per cent

2. Egypt

Price per litre: 9p Monthly cost: £10.87

Income (after tax): £247.35 Percentage of monthly income spent on petrol: 4.39 per cent

1. Venezuela

Price per litre: 8p Monthly cost: £9.66

Income (after tax): £354.48 Percentage of monthly income spent on petrol: 2.73 per cent

Venezuela pips Arab oil-producing countries – but Qatar real winner

METHODOLOGY

This is Money alongside Evans Halshaw, have scoured a number of sources to find the average unleaded prices worldwide.

We then compared this to the average disposable income figures, based on Numbeo data.

Monthly unleaded costs are based on an individual owning a car that does 48.22 MPG, driving 12,000 miles a year.

Venezuela has taken the crown for the cheapest petrol in the world for the second year running in our annual report.

Those that live in the country see cheap petrol as a birthright. An increase in prices at the pump in the late 1980s resulted in riots in Caracas and ultimately current president Hugo Chavez’s political rise.

It is so cheap in the country that petrol smuggling is thought to be a bigger business than drug smuggling – with neighbours such as Colombia paying more than 40 times the price for petrol, you can see why.

According to the statistics however, the average citizen’s income after tax is £354.48. This means that on average, 2.73 per cent of wages are spent on filling up the motor.

This is cheap compared to some of the countries we revealed have the highest petrol costs in the world.

In Norway, where the price of unleaded is the most expensive 164p a litre (April 2012) the average person spends 7.4 per cent of their wage to fill up their tank.

There is no doubt that Venezuelans have it good when it comes to petrol prices and how much they spend on filling up their cars, but it’s oil-rich nations in the Middle East that benefit from not only low petrol costs, but high wages as well.

Topping the list is Qatar, where the average person spends 0.4 per cent of their wage on unleaded petrol. Saudi Arabia is not far behind with 0.98 per cent, while Kuwait (1.2 per cent) and Bahrain (1.81 per cent) also beat Venezuela.

Qatar pays some of the highest wages in the world. The country, which will host the football World Cup in 2022, has a population of roughly 1.7million.

According to Forbes Magazine, it is the richest nation in the world. The research has found the average take home pay after tax is a mammoth £3,664.92 monthly, while the average petrol price is 12p a litre.

If you compare that to Britain in our April 2012 petrol survey, the average litre of petrol was 142p and average monthly salary after tax £1,660.52. This meant 10.3 per cent of wages is spent on filling up the tank.

It’s not all plain sailing for countries with cheap petrol however. Turkmenistan has an average petrol price of 17p, putting it seventh of our list of cheap petrol.

However, this equates to a monthly bill of £20.53 to fill up a motor – and with the average monthly wage before income sitting at £115.42, it means 17.79 per cent of wages are spent on petrol.

This is easily the highest figure in the list and to put it into perspective, of the countries that made up the top ten expensive places for fuel, only three have higher percentage of income going on fuel bills.

These are Eritrea (61.1 per cent),Turkey (34.2 per cent) and Greece (25.4 per cent).